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31) Refer to Table 18-4. What would horizontal analysis report with respect to long-term liabilities? A) That long-term liabilities decreased by $30,000 B) That long-term liabilities decreased by 40% C) That long-term liabilities decreased by 60% D) That long-term liabilities decreased by 67% 32) La Paz Company reported the following data: (Dollar amounts in millions) 2014 2013 Amount of.
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27) Refer to Table 18-5. On a vertical analysis, what percentage would be shown for net income? A) 12.1% B) 8.8% C) 9.8% D) 27.3% 28) Oglethorpe Company reports the following information from the vertical analysis of its income statement: Net income: 4.2 % in 2014 3.9% in 2013 Which of the following statements could be logically concluded from.
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  Table 18-6 Arlington Company prepared a common-size income statement, for 2013, to compare its results with its key competitor, Bardo Company.  Please refer to the following data: Arlington Co. Bardo Co. Revenues 100.0% 100.0% Cost of goods sold 42.1% 47.8% Gross margin 57.9% 52.2% Operating expenses:    Sales and marketing expense 26.3% 8.6%    General and administrative expense 12.0% 10.8%    Research and development expense   4.1% 10.2% Total operating expenses 42.4% 29.6% Income before income.
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33) Complete a vertical analysis on the La Paz Company balance sheet data shown in the format below: (Dollar amounts in thousands) 2014     Amount % of total Assets Current assets: Cash $  10,000 Accounts receivable, net 15,600 Inventory    38,000    Total current assets    63,600 Property, plant and equipment, net 195,000 Other long-term assets    15,000 Total assets $273,600 Liabilities Current liabilities: Accounts payable $   8,500.
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69) State whether each event below should be classified as an operating activity, investing activity, financing activity, shown in a separate schedule or note of noncash investing and financing activities, or not disclosed on the cash flow statement. _______________  a) Paid for merchandise purchased on account _______________   b) Received stock dividends _______________   c).
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19) All of the following statements about management's discussion and analysis that accompanies financial statements are true, except: A) it is restricted to a discussion and analysis of the historical data presented in the financial statements B) it provides management with the opportunity to explain in narrative form its current financial situation.
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1) Cash collections from customers, cash receipts of interest, and cash receipts of dividends would all be shown as financing activities on the cash flow statement. 2) Amortization expense is not listed on a direct-method cash flow statement since this item has no effect on cash. 3) Gains and losses on the.
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41) The following table shows selected data for Wong Corporation for the past five years ended December 31, 2014: 20142013201220112010 Net sales$19,500$17,400$18,200$16,500$14,900 Cost of goods sold9,50010,3009,5008,9008,000 Inventory13,00012,2008,7009,5009,300 Net accounts receivable7,5006,8007,2007,0006,500 a) Prepare an analysis showing the trend percentages for the four years 2011-2014, using 2011 as the base year. b) What was the inventory turnover for 2013? c).
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  Table 17-6 The income statement and partial balance sheet for the Jefferson Company is presented below. Jefferson Company Income Statement For the Year Ended December 31, 2014 Revenues :      Sales revenue $500,000 Expenses:      Cost of goods sold $ 390,000      Salary expense 70,000      Amortization expense 20,000      Other operating expenses     10,000 Total expenses   490,000 Net income $  10,000 Jefferson Company Partial Balance Sheet December 31, 2014 2014 2013 Cash $ 80,000 $.
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21) Comparing operating expenses in 2014 with operating expenses in 2013 is an example of: A) horizontal analysis B) vertical analysis C) ratio analysis D) economic-value-added analysis 22) Assuming the inventory balance at the end of 2014 is $20,000, and it has increased by 10% since the end of 2013, the balance at the end.
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9) Dodge Corporation reported cash collections on account of $90,700 and an increase of $13,500 in accounts receivable for the same period. Sales on account for the period were: A) $104,200 B) $90,700 C) $77,200 D) $97,450 10) Pinto Corporation reported sales of $895,000 and its accounts receivable balance increased $13,500 during the same period..
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29) Cash payments to employees equals salary expense plus the: A) increase in salary payable B) decrease in salary payable C) beginning balance in salary payable D) ending balance in salary payable 30) Salary payable at January 1, 2014, was $45,690 and at December 31, 2014, was $53,420. If the income statement reported salary expense.
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70) For each event below, determine if it should be classified as an operating activity, investing activity, or financing activity. Then determine the increase or decrease to the cash account. Transaction Type of Activity Effect on Cash 1. Sold 1,000 common shares for cash at $20 per share. 2. Purchased equipment for $500,000 cash. 3..
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83) State whether the following ratios are classified as:  a) ratios that measure the company's ability to pay current liabilities; b) ratios that measure the company's ability to pay short-term and long-term debt;  c) ratios used to analyze the company's shares as an investment;  d) ratios that measure the company's.
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  A) Operating activities - Increase in cash B) Operating Activities - Increase in cash C) Does not appear on the cash flow statement D) Non-cash investing financing activity in the notes E) Financing activities - Decrease in cash F) Investing activities - Increase in cash G) Operating activities - Decrease in cash H) Investing activities - Decrease.
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107) Describe what is meant by the phrase efficient capital market. How does the level of market efficiency affect a value investor. 1) While the numbers in the financial statements under Accounting Standards for Private Enterprises (ASPE) and International Financial Reporting standards (IFRS) will usually differ, the procedures for analyzing the.
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88) Following is a comparative balance sheet for Wong Corporation: Wong Corporation Comparative Balance Sheet December 31, 2014 and 2013      Assets20142013 Current assets Cash$ 12,000$  8,000 Short-term investments7,0009,000 Accounts receivable, net33,00020,000 Merchandise inventory47,00042,500 Prepaid expenses   2,000   3,000 Total current assets101,00082,500 Property, plant, and equipment, net73,40050,000 Intangible assets  29,000  27,500 Total assets $203,400              $160,000     Liabilities  Current liabilities Short-term note payable$ 60,000$ 65,900 Accounts payable  20,000  22,500 Total.
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21) The five-component framework of an information system consists of computer hardware, software, data, people, and ________. A) bugs B) procedures C) device drivers D) tools 22) In a grocery store, the clerk scans the UPC code on an item, which is transmitted to the computer. The actual scanner device is an example of the.
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45) You are reviewing the financial statements of three companies in the same industry. Specifically, you are interested in the transactions surrounding property, plant, and equipment (PPE) during the past year. The following information is available for the three companies. Compute the unknowns. AB Co. DC Co. PG Co. Beginning PPE, net of amortization $850,000 .
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27) The following selected data for Ryder Corporation for the year ended December 31, 2014, are available to you for preparing the cash flow statement: Cost of goods sold$56,500Sales revenue$97,300 Amortization expense14,100Interest revenue4,100 Income tax expense2,300Dividend revenue3,600 Other operating expenses17,700Salary expense24,000 Loss on sale of investments1,400Interest expense5,900 Gain on sale of property,       plant, and equipment7,200 The.
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39) Following is a comparative income statement for Chui Corporation: Chui Corporation Comparative Income Statement For the Years Ended December 31, 2014 and 2013 20142013 Net sales$122,000 $120,000 Expenses: Cost of goods sold62,00057,000 Selling and general expenses 20,00012,000 Interest expense12,00014,000 Income tax expense      6,000     7,000 Total expenses 100,000                 90,000 Net income $ 22,000$ 30,000 a) Prepare a horizontal analysis.
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  Table 18-7 Jackson Company has prepared the following comparative income statement, for 2014, to compare its performance with industry averages: Jackson Co. Industry Revenues $8,000 $98,000 Cost of goods sold 3,500 38,900 Gross margin 4,500 59,100 Operating expenses:    Sales and marketing expense 1,450 21,000    General and administrative expense 960 13,900    Research and development expense     330    3,880.
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Multiple Choice 1) "The number of transistors per square inch on an integrated chip doubles every 18 months." This observation is known as ________ Law. A) Murphy's B) Moore's C) Amdahl's D) Metcalfe's 2) Which of the following statements best describes Moore's Law? A) A computer becomes obsolete within 18 months. B) The number of transistors per square.
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4) Under the indirect method, a gain resulting from the sale of equipment would: A) be subtracted from net income in the operating activities section B) be added to net income in the operating activities section C) appear in the financing activities section D) appear in the schedule of noncash investing and financing activities 5).
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82) Dividend received from an investment in shares. 83) Cash collected for interest on a note receivable. 84) Cash collected for principal on a note receivable. 85) Cash collected for interest on a bond investment. 86) Cash paid for principal on a note payable. 87) Cash paid for income taxes of the business. 88) Equipment is.
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1) Under International Financial Reporting Standards (IFRS), the Cash Flow Statement is  called the Statement of Cash Flows. 2) Under Accounting Standards for Private Enterprises (ASPE), dividends received and paid are reported as investing and financing activities respectively. 3) Under Accounting Standards for Private Enterprises (ASPE), receipts of interest and dividends are .
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21) The operating activities section from the cash flow statement of Folly Corporation is listed below. Folly Corporation Cash Flow Statement For the Year Ended December 31, 2014 Cash flows from operating activities: Net income$39,000 Add (subtract) items that affect net income and cash flows differently:  Amortization$20,100 Loss on sale of investments1,400 Gain on sale of property, plant,.
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19) Refer to Table 17-1. The payments to suppliers for inventory during the period were: A) $343,800 B) $353,000 C) $368,000 D) $425,500 20) Mark Corporation's inventory account increased $26,800 and its accounts payable account (which relates to the purchase of merchandise only) decreased $18,240 during the year. Mark also reported sales of $789,500 and.
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  Select from the following list the letter of the ratio title for the formula provided in the question. A.Current ratio B.Acid-test (quick) ratio C.Inventory turnover D.Accounts receivable turnover E.Day's sales in average accounts receivable F.Debt ratio G.Times-interest-earned ratio H.Rate of return on net sales (profit margin) I.Rate of return on total assets J.Rate of return on common shareholders' equity K.Earnings per.
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31) Which of the following is the weakest password? A) B33rmu9 B) Qw37^T1bb?as C) 3B47qq<3>5!7bdE D) As60$T1dd?dc 32) Which of the following is considered a strong password? A) sword123 B) RileyyeliR C) paranoid4EVER D) BL@k2V1.0.1 33) Which of the following techniques is best suited for creating memorable, strong passwords? A) use at least one dictionary word in the password B) use numbers.
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1) The primary reason for conducting financial analysis is to uncover fraud. 2) It is generally considered more useful to know the percentage change in financial statement amounts from year to year than to know the absolute dollar amount of their change. 3) When preparing a horizontal analysis of financial statements, subtract.
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59) An "efficient capital market" is one where: A) companies can easily and efficiently raise capital when needed B) regulatory bodies are doing a good job of controlling the sale of publicly available share securities C) stock market prices fully reflect all information available to the public D) the stock market is inefficient 60) All.
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  Table 17-3 Cando Company uses the indirect method to prepare its statement of cash flows. Refer to the following information: 2014 2013 Increase/decrease Cash $  17,000 $  12,000 $  5,000 Accounts receivable 26,000 29,000 (3,000) Inventory 49,000 35,000 14,000 Property, Plant & Equipment (net) 110,000 80,000 30,000     Total assets $202,000 $156,000 $  46,000 Accounts payable 7,000 $  10,000 $  (3,000) Accrued.
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  A) working capital B) rate of return on net sales C) rate of return on common shareholders' equity D) day's sales in receivables E) times-interest-earned ratio 69) Current assets minus current liabilities 70) Ratio of income from operations to interest expense 71) The ability to generate enough cash to pay long-term debts as they mature 72) Common shareholders'.
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11) Horizontal analysis involves the study of: A) the changes in individual financial statement amounts as a percentage of some related total B) percentage changes in various financial statement amounts from year to year C) the change in key financial statement ratios over a certain time frame or horizon D) the relationship of one.
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84) Based on the following information for Rockwell Corporation for 2014, calculate the following ratios: Merchandise inventory, January 1, 2014$ 40,000 Accounts receivable, January 1, 2014130,000 Cost of goods sold 160,000 Net sales350,000 Merchandise inventory, December 31, 2014 55,000 Accounts receivable, December 31, 2014120,000 a) accounts receivable turnover b) days' sales in receivables c) merchandise inventory turnover 85) The following.
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21) Refer to Table 17-5.  On the cash flow statement, what amount will be shown for payments to suppliers for operating expenses? A) $26,800 B) $23,200 C) $30,000 D) $18,600 22) Refer to Table 17-5.  On the cash flow statement, what amount will be shown for cash flow from operating activities? A) $26,800 B) $29,200 C) $23,000 D) $18,600 A).
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